Bakery and Residential flat Above

UK Property Finances client husband and wife team (66 and 61) who have successfully run their cake shop for the last 25 years. They were seeking to refinance and raise capital in order to repay existing borrowing of £58,000. The additional funds were also to be used to undertake some improvements to the business.

One of our Senior Lending Managers managed the case due to the loan amount sitting slightly outside of criteria. In spite of this, we were able to gain comfort in other areas in order to proceed, demonstrating our flexible and personal approach.

The property itself was a semi-commercial retail property with the cake shop on the ground floor and a residential flat situated on the floor above.

The accounts revealed that trading of the shop was consistent with drawings of £7,350 which was enough to cover personal requirements. This was supported with the rental income of £525 per month from the flat above which had been rented for the last 6 years.

The credit profile of the clients and the business was A1 and showed us that their outgoings were by no means exceeding their income.

Whilst age could be seen as a concern, with a low LTV of 43% and a part capital repayment, UK Property Finance were able to view the case pragmatically and were confident to offer the clients the required funds of £63,913.50 over a five year term with 7.5% capital being repaid.

The UK Property Finance team and the bakery worked swiftly together and the case was completed three weeks from solicitor instruction.